Economics Basics Quiz

Microeconomics focuses on analyzing individual agents and markets, their interactions, and the outcomes of interactions.

Macroeconomics analyzes the economy as a system, including the interactions between production, consumption, saving, and investment, as well as factors affecting it such as employment, inflation, economic growth, and public policies.

The two broad distinctions within economics are positive economics, which describes "what is", and normative economics, which advocates "what ought to be".

<p>Economic theory focuses on developing and analyzing theories and models to explain economic phenomena, while applied economics applies those theories and models to real-world situations and problems.</p> Signup and view all the answers

<p>The main agents analyzed in economics include households, firms, buyers, and sellers.</p> Signup and view all the answers

<p>Human capital refers to personal attributes that are considered useful in the production process. It includes employee knowledge, skills, know-how, good health, and education. It is defined by economists as the acquired and useful abilities of individuals.</p> Signup and view all the answers

<p>Human capital has a substantial impact on individual earnings. Research indicates that investments in human capital have high economic returns throughout childhood and young adulthood.</p> Signup and view all the answers

<p>Companies can invest in human capital through education and training, improving levels of quality and production.</p> Signup and view all the answers

<p>The first use of the term 'human capital' may be credited to Irving Fisher.</p> Signup and view all the answers

<p>Arthur Cecil Pigou recognized that there is such a thing as investment in human capital, in addition to investment in material capital.</p> Signup and view all the answers